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  1. #1
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    Retiring in your 30's or 40's

    I don't know if anyone else watches some of these videos of people retiring in their 30's or 40's with 1 million dollars but I just don't know how they can feel secure doing it at that age. Are they basing their decisions on the stock market performance over the last 10 years and assuming it will be the same going forward? Are they not planning on having kids? I was looking at some of the stock market projections over the next 10 years from some of the asset managers. Now no one can predict even 6 months out but lets just say they are right and we get a flat market for a decade returning maybe 3-5% and inflation is 2%, then how do you stay in retirement at 30 to 40 years of age without ending up broke? I guess they could go back to work but it seems like a huge risk. I can see the great resignation turning into the great application if it happens.

  2. Stocks/Investments Moderator boneil's Avatar
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    #2
    I'm guessing anyone retiring at that age with that little of money won't be retired for long. Now if were talking about multiple millions, then I could see how you could retire. There's a few Teslanaires that I have seen on social media who use their holding to earn income by selling options, and borrowing on margin. And some of them use their holdings to do other things like to fund other businesses.

    I usually figure that with 1 million dollars I could earn $50K per year but the younger we are, the more I would want to retire. I could see retiring at 40 with 5 million.
    Thanos was the hero

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    #3
    Here are some observations and commentary on those I read about leaving the workforce so young.

    many had a job in high tech where their salary just blew up. Congrats…just hope it truly is enough…see below.

    many of them are not truly retired. Many realize it isn’t enough so they are freelancing on the side…whether that is writing blogs or taking on smaller jobs. Just like many of the “FIRE” blog authors. Is it truly retiring if you still NEED to work?

    many live way below their means….which typically can mean they are always looking to live life on the cheap….very cheap. What a crappy way to live.

    many are nervous about making it as their savings provides very little room for error. I hate always looking over my shoulder.

    many look for ways to take advantage of federal healthcare subsidies by driving their income way down. I never want to feel like I am a burden on society…and this one would make me feel that way.

    Just some common themes I see when I read their blogs. Things aren’t always as they seem.

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    #4
    How can they afford the health insurance?

  5. Member
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    #5
    Quote Originally Posted by Tfall View Post
    How can they afford the health insurance?
    I guess if their income is low and they are younger the premiums would be pretty cheap with subsidies under the exchange.

  6. Member
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    #6
    Boilermaker hit it in the head. Most may be retiring from “full” time work but often write blogs or do other odd jobs to supplement their retirement.

    If I wasn't lost, I'd surely know where I was going!

  7. Member
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    #7
    Quote Originally Posted by BoilermakerZ519 View Post
    Here are some observations and commentary on those I read about leaving the workforce so young.

    many had a job in high tech where their salary just blew up. Congrats…just hope it truly is enough…see below.

    many of them are not truly retired. Many realize it isn’t enough so they are freelancing on the side…whether that is writing blogs or taking on smaller jobs. Just like many of the “FIRE” blog authors. Is it truly retiring if you still NEED to work?

    many live way below their means….which typically can mean they are always looking to live life on the cheap….very cheap. What a crappy way to live.

    many are nervous about making it as their savings provides very little room for error. I hate always looking over my shoulder.

    many look for ways to take advantage of federal healthcare subsidies by driving their income way down. I never want to feel like I am a burden on society…and this one would make me feel that way.

    Just some common themes I see when I read their blogs. Things aren’t always as they seem.
    I guess at their age if they have to go back to work in their 40's it is not such a big deal. I think if you hit 60 and want to go back it might be harder unless you have an in demand skill set. To be young again with no fear

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    #8
    Quote Originally Posted by NitroZ7 View Post
    I guess at their age if they have to go back to work in their 40's it is not such a big deal. I think if you hit 60 and want to go back it might be harder unless you have an in demand skill set. To be young again with no fear
    yeah…I think there is a big difference between “have to go back to work” vs. “want to go back to work”.

    It’s just that only one of these meets the definition of the financially independent part of the FIRE acronym.

  9. Nitro Boats Moderator BMCD's Avatar
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    #9
    I sure would not feel comfortable retiring with a million in a retirement account. But heck if you got a million or 2 by 30 or 40 your doing really good.
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  10. #10
    If they bought some bitcoin early on with their allowance money, they could have retired out of high school, with some financial planning. It would be cool under your picture in your high school annual, for it to read Retirement, Bass Fishing, & Travel.

  11. Member
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    #11
    I would not feel comfortable at 60 retiring with a million in retirement account.

    Being poor does help with health insurance.

    Most persons that I know, who have retired early, have some kind of Health Insurance plan.

    They may have a spouse still working, or Health Insurance as part of their retirement benefits.

    Private Health Insurance and out-of-pocket can easily be $20,000 per year.

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    #12
    They have a back up plan. Like rich parents!
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  13. Member
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    #13
    It all depends on how you are use to living and where you live. Lots of people out there trying to survive on minimum wage jobs. If they had a million dollars, and were able to manage it correctly, they could easily retire and even increase their standard of living. The ones that try to live off the land off the grid, could get by too. It wouldn’t work for me, but for some it would.

  14. Member
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    #14
    Depends what you consider retired, I know lots of retired folks that are doing side jobs, consultant work, helping with friends businesses because they can’t find employees. Most aren’t doing it out of necessity. My dad’s retired now he’s county commissioner, my uncle retired, yet he’s driving tractor every spring and fall. My father in-law retired and he does nothing. All are happy in their own way but two seem to have a lot more life in them.

    Obviously where and how you live has lots to do with it.

    For Us we plan to leave the workforce at 45 wife has already left it. We will have two homes paid off and no debt. Our goal is an additional 1.5 million mostly Roth and HSA but also an individual account. The only legs up we were given is wife’s parents paid her college tuition. I paid for mine, I worked through college and only had 25k debt when I got out. Other leg probably the best decade in market history. (No telling what comes next)

    We use Christian Healthshare for insurance. 400/month family of 5 so far we are healthy and have yet to use the benefits so hopefully we don’t have a rude awaking should we need it.

    We don’t believe that will allow us to live like kings and do nothing the rest of our life. It will allow us to do our own thing and decide how much we want to work and when we want to work. Our goal is a small family business. Our kids will be 7, 9 and 11. I feel folks that grew up in some sort of a family business setting end up being the most successful later in life.

    It may be as simple as detailing cars, boats, fixing trailer wiring and repacking wheel bearings. (Not hardly retired) but it’s a difference of needing to do enough work to pay bills and save for retirement or enough work to supply current needs. (Google jimmy johns fisherman story and read it to understand) Currently that kind of work is in high demand. We’ll see what is in demand in 7 years.

    We aren’t market timers but with the current state of the market we did change up our philosophy. We were putting all extra money into no fee index funds through fidelity. But now we are using it to pay off our mortgage in 7 years, even though it’s at 2.8%. Guess it’s a piece of mind thing.

    The key is being able to adapt and overcome! If the market happens to get bloody we may switch that back to the market.

    Good luck to all! The good thing about the “great quit” is it will open lots of opportunity for those willing to work learn and improve their situation!

    Currently it’s going to cause inflation as I know lots who turned in their notice and we’re given a bonus and a raise to stay on. (Personally I think it’s a bad tactic on the employer but happening a lot right now)
    Last edited by Walleyesok; 07-27-2021 at 10:35 AM.